Fiscal board orders Ports to submit 2018 LNG supply contract by today

By The Star Staff

After failing to do so in 2018, the Financial Oversight and Management Board ordered the Puerto Rico Ports Authority to submit the contract for the supply of liquefied natural gas (LNG) by today (July 24).

Puerto Rico Energy Czar Josué Colón Ortiz, recently addressed the controversial contract between the Ports Authority and NF Energía LLC, which was signed on May 3, 2018. The agreement, which involves the lease of certain facilities and areas within the Puerto Nuevo Port Zone in San Juan for LNG supply, was never submitted for review and approval by the oversight board, violating the board’s contract review policy established under Section 204(b)(2) of the Puerto Rico Oversight, Management and Economic Stability Act, commonly known as PROMESA.

In light of this, the oversight’s executive director, Robert Mujica has requested that Ports Authority Executive Director Norberto Negrón Díaz submit the contract and any amendments by July 24, 2025. The submission must include all necessary documentation as required by the contract review policy, such as valuation details and relevant procurement processes.

Additionally, Mujica inquired about the reasons behind the failure to submit the contract for oversight board consideration prior to its execution. The aim is to ensure transparency, accountability, and compliance with established regulations in managing public-private partnerships in Puerto Rico’s energy sector.

“As part of our review, please explain why the contract should have been submitted prior to execution to the Oversight Board for its consideration in accordance with the Policy,” Mujica said in the letter dated July 22.

The contract was brought to light after New Fortress Energy, the parent company of NF Energia, cancelled deliveries of natural gas to the island citing a debt going to 2020, which the government denies owing. Since then, Gov. Jenniffer González Colón has said it will be very difficult to cancel the NF Energia contract, which gives the company a virtual monopoly in the delivery of LNG.